Question

Saved Chapter 08 Homework(E8-12,3,5,7,8) 0 Exercise 8-8 Budgeted Income Statement (L08-9) Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: points Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense per year) Interest expense for the year 680 2,060 1.60 11 $ 200,000 $ 22.000 Required: Prepare the company's budgeted income statement for the year References Gig Harbor Boating Budgeted Income Statement

Answer 1

Sales (680*2060)	1,400,800
Cost of Goods Sold (1680*680)	1,142,400
Gross margin	258,400
Selling and administrative expenses	234,000
Net operating income	24,400
Interest expense	22,000
Net income	2,400